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TMI Blog2011 (3) TMI 1205X X X X Extracts X X X X X X X X Extracts X X X X ..... n 112 of the Customs Act. Whether they had any intention to evade payment of duty or not is immaterial as it is settled law that no mens rea is required for penalty under Section 112, quanta of fine reduced and penalty - reduce the quanta of fine and penalty to Rs.5 lakhs and Rs.1 lakh respectively. The importer shall pay these amounts at the earliest, whereupon the relevant Bank Guarantee shall be returned to them. CHA - CHA did not obtain authorization from the importer - CHA abetted the offence committed by the importer - Held that:- As regards the first charge, it was, at best, a ground for action against the CHA under the Customs House Agents Licensing Regulations, 2004 rather than under Section 112 of the Customs Act. With regard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding another invoice of the supplier bearing the same number and date but showing higher price of the goods (EUR 10,65,252/-), the importer admitted their mistake and came forward to execute a bond and furnish a Bank Guarantee to secure the revenue. Accordingly, Bank Guarantee for Rs.1,17,59,636/- valid upto 23.7.2007 was furnished and a Bond for an amount of Rs.1,89,02,069/- was also executed by the importer. Against this security, the capital goods were provisionally released. Subsequently, a show-cause notice was issued to the importer and their CHA (i) seeking to deny the benefit of the Notification to the importer and recover differential duty from them and (ii) proposing confiscation of the goods under Section 111 (m) (o) of the Cus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Entry and this value was declared in the Bill of Entry also. A letter-of-credit (LC) had been opened for the correct value viz. EUR 10,65,252/- and the Bond and Bank Guarantee (which were furnished to the assessing authority at the time of filing the Bill of Entry) were also for this value of the goods. In the statement given by the importer, the inadvertent mistake was readily admitted and, without unreasonable delay, the mistake was rectified by way of production of additional Bank Guarantee and Bond to secure the revenue. The differential amount of duty on the differential assessable value was also paid for provisional release of the goods. In these circumstances, it is argued, no mens rea can be attributed to the importer. It is fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of-credit (LC) was opened also for the correct value. EPCG licence, LC, Bank Guarantee and Bond for correct value of the goods were filed with the assessing authority by the importer at the time of presenting the Bill of Entry. Apparently, there was no attempt to hide anything. Simply, it was an inadvertent mistake of the importer having declared in the Bill of Entry the lower price mentioned in another invoice of the supplier. The circumstances under which invoices showing different prices were issued by the supplier have also been satisfactorily explained by the importer. As a matter of fact, the intention of the importer has not been doubted before us. The transactions are, by and large, transparent. In the circumstances, the benefit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustoms Act. Whether they had any intention to evade payment of duty or not is immaterial as it is settled law that no mens rea is required for penalty under Section 112. The Commissioner imposed a penalty of Rs.20 lakhs on the importer. Obviously, it needs to be reduced in the circumstances already stated. 9. In the circumstances of this case, we reduce the quanta of fine and penalty to Rs.5 lakhs and Rs.1 lakh respectively. The importer shall pay these amounts at the earliest, whereupon the relevant Bank Guarantee shall be returned to them. 10. It goes without saying that the charges levelled against the CHA are not sustainable. One charge against them is that they did not obtain authorization from the importer. Another charge is t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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